Economics Quiz

Which field of economics would analyze the effects of inflation on the entire economy?

• Microeconomics

• Economic Interdependence

• Macroeconomics

• Circular Flow Diagram

What does the law of demand state?

• As the price of a good rises, the quantity of the goods consumers are willing and able to buy decreases

• As the price of a good rises, the quantity of the goods consumers are willing and able to buy increases

• As the price of a good falls, the quantity of the goods consumers are willing and able to buy decreases

• As the price of a good falls, the quantity of the goods consumers are willing and able to buy remains the same

Which term describes goods or services that go together?

• Quantity Supplied

• Quantity Demanded

• Complimentary Good/Service

• Substitute Goods/Services

Which of the following is an example of a complimentary good?

• Tea and coffee

• Bread and butter

• Pen and pencil

• Car and bicycle

Which of the following is an example of substitute goods?

• Tea and coffee

• Bread and butter

• Pen and paper

• Car and gasoline

What happens to the quantity demanded when the price of a complimentary good increases?

• It decreases

• It remains the same

• It increases

• It becomes zero

What is the lowest price a product can be sold at, as instituted by the government?

• Price Floor

• Equilibrium Price

• Surplus

• Minimum Wage

What is another term for the equilibrium price?

• Market Clearing Price

• Price Floor

• Surplus

• Minimum Wage

Which term is used to describe the lowest wage a worker can be paid, as set by the government?

• Minimum Wage

• Equilibrium Price

• Surplus

• Price Floor

What is the result when the supply of a product is higher than the demand for it?

• Surplus

• Equilibrium Price

• Price Floor

• Minimum Wage